19.502-6 Setting aside a class of acquisitions for small business
Source: FAR 19.502-6 on acquisition.gov
FAR 19.502-6 allows agencies to proactively reserve groups of acquisitions for small businesses, but requires careful documentation, periodic review, and clear communication of scope and exceptions.
Overview
FAR 19.502-6 outlines the procedures and requirements for setting aside a class of acquisitions—groups of similar products or services—for exclusive participation by small business concerns. This allows agencies to proactively reserve certain types of acquisitions for small businesses, even if a specific acquisition is not currently planned, as long as future needs are foreseeable and meet the criteria in FAR 19.502-1, 19.502-2, or 19.502-3(a).
Key Rules
- Class Set-Aside Eligibility
- A class of acquisitions can be set aside for small businesses if individual acquisitions meet the small business set-aside criteria.
- Determination Process
- The set-aside determination can be made unilaterally or jointly and must be documented in writing.
- Written Determination Requirements
- The determination must specify covered products/services, clarify applicability, and note exceptions (e.g., automatic set-asides, non-severable requirements).
- Review and Modification
- Contracting officers must review each acquisition under the class set-aside for changes in requirements or market conditions and may withdraw or modify the set-aside if necessary, with written notice to the SBA PCR.
Responsibilities
- Contracting Officers: Must document class set-aside determinations, review each acquisition for changes, and notify SBA PCR if modifications are needed.
- Contractors: Should monitor for class set-asides relevant to their offerings and understand eligibility requirements.
- Agencies: Ensure oversight and compliance with set-aside procedures and documentation.
Practical Implications
- This section enables agencies to streamline small business participation by reserving entire classes of acquisitions, reducing administrative burden for recurring needs. Contractors should be aware of class set-asides in their industry and ensure they meet eligibility. Contracting officers must remain vigilant for changes that could affect fair market pricing or small business capability.
(a) A class of acquisitions of selected products or services, or a portion of the acquisitions, may be set aside for exclusive participation by small business concerns if individual acquisitions in the class will meet the criteria in 19.502-1, 19.502-2, or 19.502-3(a). The determination to make a class small business set-aside shall not depend on the existence of a current acquisition if future acquisitions can be clearly foreseen.
(b) The determination to set aside a class of acquisitions for small business may be either unilateral or joint.
(c) Each class small business set-aside determination shall be in writing and must-
(1) Specifically identify the product(s) and service(s) it covers;
(2) Provide that the set-aside does not apply to any acquisition automatically set aside under 19.502-2(a).
(3) Provide that the set-aside applies only to the (named) contracting office(s) making the determination; and
(4) Provide that the set-aside does not apply to any individual acquisition if the requirement is not severable into two or more economic production runs or reasonable lots, in the case of a partial class set-aside.
(d) The contracting officer shall review each individual acquisition arising under a class small business set-aside to identify any changes in the magnitude of requirements, specifications, delivery requirements, or competitive market conditions that have occurred since the initial approval of the class set-aside. If there are any changes of such a material nature as to result in probable payment of more than a fair market price by the Government or in a change in the capability of small business concerns to satisfy the requirements, the contracting officer may withdraw or modify (see 19.502-9(a)) the unilateral or joint set-aside by giving written notice to the SBA PCR (or, if a PCR is not assigned, see 19.402(a)) stating the reasons.